ZIM has reported its financial results for the third quarter of 2014. It recorded revenue of $854m during the quarter, which represented a decline of 5.11% year-on-year. The company also recorded EBITDA of $41m, which represented an increase of 272.73% compared with the third quarter of 2013. Accordingly ZIM’s margin stood at 4.80%.
The company carried 0.56m TEUs during the quarter, reflecting 13% decrease compared to the corresponding quarter of 2013. Most of the decrease was as attributable to the termination of services from Asia to Northern Europe. The volume reduction significantly impacted the revenue result, but this was countered to some extent by a 7% increase in the average freight rate compared to the corresponding quarter of 2013.
In spite of the reduction in revenues and the lower volume of containers carried, ZIM managed to reduce the net loss and recorded an operating profit. This was the result of a number of different factors including the company’s streamlining activities, improving sales, the decline in fuel prices, the reduction of activities of unprofitable lines, and an increase in freight rates on certain lanes.
In addition the completion of debt restructuring during the quarter has placed the company in a stronger financial position from which to increase profits.
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